The Life Insurance Association, Singapore, today released its 1Q set of industry results posting a 31% rise in QoQ single premiums issued.
Singapore's life insurance industry recorded a total of S$965.8m in weighted new business premiums1 for 1Q2020, a 10% increase on the same period in 2019.
Overall, single premium business recorded a 31% QoQ increase in weighted single premiums, amounting to S$293.4m for 1Q2020, attributed to insurers' new product launches and associated promotional activities.
With circuit breaker measures, climbing unemployment and an impending recession, the life insurance industry may see the knock-on effect in the coming quarters.”
The LIA said single premium par and non-par products comprised 73% of new business, with single premium linked products made up the remaining 27%.
Annual premium policies recorded a steady 3% increase from the same period last year. This amounted to S$672.4 million in total weighted annual premiums.
Khor Hock Seng, president of the LIA Singapore, said: "The industry continues to make headway in bridging protection gaps in the first quarter as more consumers take action to secure their financial future in view of covid-19's drastic impact on global and local markets."
Khor went on to warn the outlook could worsten: "However, with circuit breaker measures, climbing unemployment and an impending recession, the life insurance industry may see the knock-on effect in the coming quarters."
"Singapore's life insurance industry remains resilient, united, and committed to providing support for customers and our workforce during these challenging times. We will continue working closely with regulators to facilitate support measures effectively and efficiently," he added.